Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 12 - The Demand for Resources - Questions - Page 263: 5b

Answer

7 capital 7 labor. The output in this situation is 142 (96C+46L). The economic profit is \$114 (\$142-\$28). The least cost of production will help to maximize profits. The profit maximization is inclusive of least cost principles.

Work Step by Step

This is output and MRP rules. To understand this question determine the MPc and MPl.
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